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The Gold Standard
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The Gold Standard
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23. Exchange Rates / The Gold Standard / Problem 1
Problem 1
Combine your understanding of the Gold Standard and monetary policy to explain how a country could manage economic growth under the Gold Standard.
A
A country could easily manage economic growth by adjusting gold reserves.
B
A country could manage economic growth by printing more money.
C
A country would struggle to manage economic growth due to fixed money supply constraints.
D
A country could manage economic growth by increasing interest rates.
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